Written Answers Nos. 77 to 83
77. Deputy Paul Murphy asked the Minister for Finance his views regarding potential conflicts of interest in the appointment of a person (details supplied) which, in partnership with a United States of America equity fund, is to lend €325 million from the Ireland Strategic Investment Fund, formerly the National Pensions Reserve, to developers. [33483/15]
View answerThe ISIF has advised that they do not perceive a conflict of interest arising from Mr. O'Connor's appointment as Chairman of Activate Capital as (i) Mr. O'Connor stood down as Chairman of AIB in 2010, and (ii) his recently ceased directorship of CRH was in a non-executive capacity and regardless of this fact CRH, as a supplier of building materials, is not in the business of residential property development.
For clarity the €500 million Activate Capital initiative, which will invest in the development and construction of housing, involves a €325 million investment by ISIF and €175 million by KKR as a joint venture. ISIF Investment decisions are a matter for the Investment Committee which has responsibility to make decisions within the terms of ISIF's Investment Strategy.
78. Deputy Michael McGrath asked the Minister for Finance if he will consider seeking the extension of the seafarer’s tax allowance to those whose voyages both begin and end in the State, but which involve extended periods outside of the State and its territorial waters; and if he will make a statement on the matter. [33490/15]
View answerThe seafarers allowance, which is provided for under section 472B of the Taxes Consolidation Act 1997, applies to the shipping industry and is currently an approved state aid under EU rules. The allowance of €6,350 at the marginal rate is conditional on a seafarer being at sea for at least 161 days in a tax year. The duties must be wholly performed aboard sea-going ships on an international voyage. A sea-going ship is one that is registered in the relevant Register of a Member State and is used solely for the trade of carrying, by sea, passengers or cargo for reward. An international voyage is a voyage that begins or ends in a port outside the State. EU approval of the allowance was received on the basis of the above conditions under the EU State Aid Guidelines relating to the maritime transport sector.
The Deputy may be aware that in Budget 2015 I announced a review of the tax supports available to the marine sector, including an analysis of the costs and benefits of existing measures, as well as a review of international experience. I expect to receive the final report shortly and will consider the recommendations therein for Budget 2016 if possible.
79. Deputy Joan Collins asked the Minister for Finance the position of value added tax refunds on aids and appliances used by disabled persons in respect of a person (details supplied) in Dublin 12. [33493/15]
View answerI am advised by the Revenue Commissioners that a claim for a refund of VAT from the person (details supplied) was received by them on 15 June 2015. However, as the item in question was purchased outside the State, a refund of Irish VAT does not arise. The person concerned was advised of the position on 23 June 2015.
80. Deputy John McGuinness asked the Minister for Finance if an application for a primary medical certificate will be granted on appeal to a person (details supplied) in County Kilkenny. [33501/15]
View answerA person who is unsuccessful in their application for a Primary Medical Certificate may appeal the decision to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. After six months a citizen can reapply if there is a deterioration in their condition.
I am informed by the Disabled Drivers Medical Board of Appeal that the person (details supplied) was assessed by the Medical Board of Appeal in June 2015, and was unsuccessful in their appeal.
Regulation 6(1)(e) of the Disabled Drivers and Disabled Passengers (Tax Concession) Regulations 1994 (S.I. 353 of 1994) mandates that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations.
81. Deputy Catherine Murphy asked the Minister for Finance the resources in his Department to manage and respond to freedom of information, FOI, requests; the additional staff or staff hours he has made available towards the FOI unit in 2015; if he is satisfied that FOI request response times are adequate for his Department; if the workload from FOI requests has increased this year, and if so, by how much compared to 2014; the number of cases in 2015 where an internal review of an FOI decision was requested; the number of these that were submitted to the Information Commissioner; and if he will make a statement on the matter. [33504/15]
View answerIn relation to resources in the Department allocated to the Freedom of Information Act, there is a dedicated FoI Unit and a decentralised decision-making process in the Department. The role of the FoI Unit, which has 4 full-time staff, is to receive, allocate, monitor and administer the Freedom of Information requests but that Unit does not, generally, act as the Decision Maker in relation to Freedom of Information requests.
The decision making process revolves around the search, retrieval and assessment of records and whether to refuse, redact or release records in respect of each specific Freedom of Information request. The requests are allocated to Decision Makers in the relevant unit to which the FoI request relates within my Department. Decision Makers are usually Assistant Principal Officers but, in some cases, can be Principal Officers. The processing of Freedom of Information requests is part of the normal work of each division although there have been changes in the workload in more recent times.
There has been a significant increase in Freedom of Information requests to my Department, since the new Act came into force in October 2014. At the end of September 2014, there had been 92 FoI requests but at the end of September 2015, the comparable number was 328 FoI requests - a 256% increase year-on-year.
The FoI requests received have been very broad in terms of their ambit and relate to issues that are extremely detailed from a legal and technical perspective. In each case, there has to be a complete retrieval and review of all records before any FoI request be considered and a determination made in relation to release, redaction or exemption on each individual aspect of the FoI request. Concentration of complex FoI requests in specific units, such as the Shareholding Management unit, based on staffing numbers and budget set at the beginning of the years, reduces the Department's effectiveness in relation to the FoI process.
This has, unfortunately, impacted on the ability of my Department to answer Freedom of Information requests within the required time limits. 82% of FoI requests had response times within the requisite time limits and some 58 FoI requests are outstanding. I will be satisfied when the response time reaches 100% and in light of this situation, I have asked my Secretary General to prioritise clearance of the backlog. I am informed by my Secretary General that in addition to the team of people working almost full-time on these FoI requests, banking inquiry and Commission of Investigation requests, further full-time resources have been retained to work exclusively on the outstanding FoI requests including 8 additional Decision Makers being directed to focus on the current backlog, which will be cleared as soon as practicable.
To-date during 2015, there has been 17 internal reviews (9 completed and 8 in progress) and 2 appeals with the Office of the Information Commissioner in respect of Freedom of Information requests.
82. Deputy Tom Fleming asked the Minister for Finance his views on correspondence (details supplied) regarding the current distressed mortgage crisis; and if he will make a statement on the matter. [33508/15]
View answerI am pleased to inform the Deputy that the latest Central Bank quarter two release on mortgage arrears shows that Government policy is working and the number of accounts in arrears is in consistent decline, while more than 118,500 mortgages have been restructured. This means that each one of these mortgage holders has agreed an affordable payment with their bank.
I have noted the contents of Mr. Joyce's submission relating to a proposal for the introduction of a rent and purchase scheme as a possible resolution for mortgage holders in distress. The Deputy will be aware that housing policy comes under the responsibility of my colleague Mr. Alan Kelly, TD, Minister for the Environment and Local Government and his Department already administers the mortgage-to-rent scheme, which permits a distressed borrower to remain in the family home as a social housing tenant.
83. Deputy Clare Daly asked the Minister for Finance if he will ensure that persons who rent a room in their primary residence are exempt from tax on income generated, according to the limits set, regardless of the basis upon which they rent that room, and whether they are involved with Airbnb or other similar networks. [33575/15]
View answerRent-a-room relief is provided for in section 216A of the Taxes Consolidation Act (TCA) 1997. Under that section, sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting, are exempt from income tax where they are below the annual limit for the tax year in question (€12,000 for 2015) and certain other conditions are satisfied.
The purpose of the relief is to increase the supply of rental accommodation by incentivising homeowners to rent out rooms in their principal primary residences to individuals on a residential basis, that is where the individuals are effectively using the room(s) either on its own or in conjunction with other parts of the residence as their home. It is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors.
The Revenue operational manual has clearly stated that income from the provision of accommodation to occasional visitors for short periods does not qualify, as visitors use the accommodation as guest accommodation rather than for residential purposes. Following the entry of Airbnb and others into the short-term accommodation market, Revenue issued an eBrief in February 2015 which amended the operational manual to further clarify that accommodation provided through online booking sites is considered to be guest accommodation. A copy of the operational manual can be accessed on the Revenue website at: http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf.
It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
